Many individuals, particularly low-wage earners, rely very heavily upon check cashing services to process their paychecks and cash advance services to manage their finances. Businesses that provide such services are an extremely valuable resource to consumers with limited liquidity and access to conventional banks. For millions of consumers, these services are a way of life. Consequently, the number of outlets offering these types of services has grown dramatically in recent years. People in need have turned such outlets into a kind of alternative banking sector.
While these outlets fill a void, they suffer several shortcomings. For example, such outlets are labor-intensive, susceptible to crime and typically relegated to low-income geographic areas. Although conventional ATMs are ubiquitous, such devices are not equipped to perform check cashing and loan operations. Concomitantly, despite the huge potential profits, retail banks have shied away from opening such outlets, because they believe it might tarnish their reputation. Ultimately, these realities harm consumers, because the limited supply of check cashing and loan outlets promotes higher transaction fees and deprives consumers of access to such services while traveling.
Individuals also face heightened safety and security risks by conducting financial transactions in cash. Carrying large amounts of cash is dangerous and keeping cash at home is not a whole lot safer. What is needed is a safe medium to keep money until a consumer is ready to spend it.
The invention is directed to overcoming one or more of the problems and solving one or more of the needs as set forth above.